The indices made a lower low from August to September. Here is an updated list of stocks that made higher lows from August to September.
This is a positive divergence and could be the next batch of leading stocks, IF the market cooperates.
@ParrotStock Seriously I don’t understand your way of investing. At some point your accounts exceeded $1MM. Then got a big hit wiped most of ur gains. Early this year your acct. was above $480K and you got another hit now. What do you do other than watching your acct going up $ down?
@ParrotStock Yea we know it. You're here for just fun. Who cares? Going from $1MM portfolio to sub $400K doesn't bother you. Let's collect more sub fees while watching that roller-coaster. Good job!
@ParrotStock Wow. If only 5% of your followers (just 5%) subscribed to your paid service and each one paid $5/month. You generate $9K/month or $108K/year. I guess you can afford losing in the market as long as you’d be able to make it up.
Additionally, I have curated further names setting up, with fundamentals filter in the 4 leading sectors that i have highlighted.
Communication Services
$PERI $YELP
Technology
$NVDA $GCT $IOT $ACMR $FSLY $RELY $DUOL $MNDY $DLO $CXM $TTD $GTLB $ZS $FRSH $TEAM $NTNX $PATH $SMAR
Energy
$TDW $OII $WFRD $LPG
Consumer Cyclical
$MNSO $MOD $DKNG $PDD $RIVN
$ALKT attempting to breakout in to early Stage 2 from a a year and a half long base structure. Weekly SATA score has improved to a max 10, but lacking volume surge on the breakout attempt and quite thin.
With the mkt in a funk at the moment, what should you look for before getting more aggressive?
1) NH/NL breadth for caps and sectors turns positive meaning the breadth of NHs is now exceeding the breadth of NLs. It will start with a contraction in NLs, meaning less and less stocks are participating in the downside. NHs numbers will expand day by day as more and more stocks will start hitting NHs. If the avg stock is hitting new highs, this increases the chances you'll get many that do as well. I track the 5 and 20-day NH/NL number daily.
2) High RS stocks roll up and break through the declining 10/20 EMAs and start to turn key MAs upward. Essentially, the 10/20 EMA on stocks will go from trending down to rolling/sloping upward.
3) Indices, leading sectors and industries roll up - the first sign is price breaks up through the 10EMA and the MA starts to slope up. This shows the avg stock is starting to trend up.
4) Proliferation of setups grows - more and more stocks set up with proper, constructive flag patterns and low volume pullbacks to the 20EMA.
5) New trades start to work - breakouts trigger, pullbacks bounce off key MAs, stopout rate decreases and stocks make more progress after breaking out
6) As the mkt continues to rally, then the top sectors and groups will now be above the 20EMA and that will start to slope up.
If these things are not present, you should be in a very high cash position, taking probes at the most. As these conditions proliferate, don't go balls deep and get 100% exposure after two days. Incrementally step up your exposure as things start to work and the weight of evidence tilts in your favor.
If the avg stock is trending up (as evidenced by upsloping MAs on the indices/sectors) and the avg stock is hitting new 5 and 20-day high (as evidenced by NHs exceeding NLs), then the odds are strongly in your favor and most long swing trading methods will likely make money. Take your best 2 or 3 ideas a day, manage risk, and let the odds and trend be your friend.
The 20-day EMA can be upsloping for weeks or months, so you can't miss these windows of opportunity. There are typically 2 or 3 of these windows a year, sometimes less in bear mkts, sometimes more in bull mkts. But if you start your buying campaign in the early phase of this mkt transition and ride your winning stocks properly, you'll be pleasantly surprised by the results.
Trading is like a dance and the mkt has to be the one doing the leading. If you don't follow the cues and clues, the mkt will step on your toes over and over again.